Pharmacy sales decline after excessive growth

On the pharmaceutical market in Russia has experienced a sharp decline in sales. In Moscow it is about 25%, in regions – at the level of minus 15%. The prices for drugs increased by 5-10%. This, speaking at the online summit “the realities of the pharmaceutical business in a pandemic” April 15, said General Director of “Pharmacy traditions” Dmitry Rutskoy.

The decline in sales, he explained that one of the weeks of March saw high demand for drugs (along with buckwheat and toilet paper).

“From 12 to 20 March, was an abnormal increase in demand. People fear rising prices, broke everything and especially imported drugs, he explained. – I talked about the fact that this “HYIP” you can’t relax and predicted subsequent decline in sales of 15%, but get more. I now predict that in may we will prasadam another 15% relative to April.”

Today the main challenge for pharmacy networks – a test of efficiency, said the speaker. In this situation, will survive only effective players. D. Rutskoi urged market participants to re-evaluate its economic and managerial models, to review a grocery matrices.

“I ruthlessly cut unprofitable point — shared experience of surviving the head of pharmacy network. — Administrative expenses I have are less than 1.5% of turnover. We initially created a fairly compact team of managers, so my task was to downsize, someone to dismiss. And we won’t have to raise prices. We have carefully analyzed the product matrix, estimated the yield of one pack and the producers that have relatively low profitability, we slowly remove from the matrix and focus on margin, revenue, liquidity position”.

Foreseeing the complications caused by the pandemic, and in particular the price increase to distributors and also to avoid directory drugs, the company established the stock at the old prices – said the expert.

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